The A52 road trip!

A couple of posts ago I said that property values in Derby had risen by 5.7% over year, or to be more precise £11,900, of which 40% of that increase has been over the last 3 or 4 months. This is great news for any who owns their own home in the City. Looking at our neighbouring City of Nottingham, the average value of a property rose by £8,100, which on the face of it, makes Derby property values streets ahead. However, when you consider average property prices in Nottingham are nearly 7% less than Derby, this means prices in Nottingham have actually risen by an impressive 5.3% during the last 12 months.

However, take a road trip along the A52 to Ashbourne and a completely different story has been seen. An average property in Ashbourne has seen a huge increase in average property values by around £29,400 over the last 12 months, or 10.7% year on year. However, don’t all start going West up the A52, as average annual yields/returns are only 2.6% a year.

I find it amazing that three places along the A52 of Derby, Nottingham and Ashbourne, all within a few miles of each other, can experience such variations in property prices. With average rents steadily rising by 1 to 2% a year and with continuing troubles for first time buyers raising the £10,000+ for the deposit and fees, I can only see greater demand for rental properties in Derby, which will mean more people will continue to buy property for buy to let, and where there is greater demand, the price tends to go up.

This however, is only my opinion. If you want to chat about any matter relating to property in Derby, pop in and see me or my team in offices on St. James’s Street.

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